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Colorado
Organization
Seeks Cigarette/OTP
Tax Increase
A group known as the Campaign for a Healthy
Colorado has announced that it is pursuing
a petition drive to support Ballot Initiative
143 to increase the Colorado cigarette tax
by $1.75 per pack from the current 84 cents
per pack to a new rate of $2.59 per pack. The
measure would also raise the state’s tax on
other tobacco products including cigars,
smokeless tobacco and pipe tobacco by
another 22 percent.
Pennsylvania
Raises
Cigarette Taxes and Sets
OTP Tax Rates
On July 13, 2016, Pennsylvania Governor Tom
Wolf signed into law House Bill 1198, which
increases the state cigarette tax by $1 per
pack, assesses a new tax on other tobacco
products of 55 cents per ounce (excluding
cigars), and enacts a new tax on electronic
cigarettes and e-liquids at a rate of 40 percent
of the purchase price charged to retailers,
reports NATO. The new law also imposes
a floor stocks tax on both wholesalers
and retailers that have cigarettes, tobacco
products (excluding cigars), e-cigarettes and
e-liquids in inventory as of August 1, 2016.
The floor tax is to be reported and paid within
90 days of this effective date. The OTP and
electronic cigarette/vapor taxes go into effect
on October 1, 2016, with the floor stocks tax
to be reported and paid within 90 days of this
later effective date.
The Pennsylvania Department of Revenue
has confirmed that information about the
new cigarette and OTP tax rates will be post-
ed on the agency’s website soon with the
necessary forms needed to report and file
the floor stocks tax. Retailers will also receive
a mailing from the Department of Revenue
regarding the floor stock tax requirement.
“NATO will follow up and include a link to the
revenue department’s website page with the
new floor stocks tax forms,” says Tom Briant,
the association’s executive director.
On July
13, 2016,
Pennsylvania
Governor
Tom Wolf
signed into
law House
Bill 1198,
which
increases
the state
cigarette tax
by $1
per pack.
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TOBACCO BUSINESS INTERNATIONAL
SEPTEMBER/OCTOBER 2016
NEWS & TRENDS
SEPTEMBER/OCTOBER 2016